Published — June 1, 2022
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
Read also: Can Employees Be Compelled To Render Overtime Work?
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Employees who work between 10:00 PM and 6:00 AM are entitled to night shift differential.
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An employee shall be paid night shift differential of no less than ten percent (10%) of his regular wage for each hour of work performed between 10:00 PM and 6:00 AM.
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However, not all employees are entitled to night shift differential.
Night Shift Differential (NSD) refers to the additional compensation of ten percent (10%) of an employee’s regular wage for each hour of work performed between 10 p.m. and 6 a.m. Generally, all employees are entitled to night shift differentials, except the following:
- Those of the government and any of its political subdivisions, including government owned and/or controlled corporations;
- Those of retail and service establishments regularly employing not more than five (5) workers;
- Domestic helpers and persons in the personal service of another
- Managerial employees
- Field personnel and other employees whose time and performance is unsupervised by the employer including those who are engaged on task or contract basis, purely commission basis, or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof (Sec 1, Rule II, IRR, Labor Code).
The purpose behind the provision is to give premium to night work when an employee is supposed to be sleeping. Working at night is violative of the law of nature for it is the period for rest and sleep. An employee who works at night has less stamina and vigor; thus, he can easily contract a disease.
Work done at night places has a greater burden on the worker. It is more strenuous and onerous than work done during the day; therefore, it deserves greater or extra compensation (Shell Co. vs. NLU, 81 Phil. 315).
Computation of Night Shift Differential Pay under the Law:
- Night Shift work is Regular Work
a. On an ordinary day:
Plus 10% of the basic hourly rate or total of 110% of the basic hourly rate.
b. On a rest day, special day or regular holiday:
Plus 10% of the regular hourly rate on a rest day, special day or regular holiday or a total of 110% of the regular hourly rate.
- Where night shift work is overtime work.
a. On an ordinary day:
Plus 10% of the overtime hourly rate on an ordinary day or a total of 110% of the overtime hourly rate on an ordinary day.
b. On a rest day or special day or regular holiday:
Plus 10% of the overtime hourly rate on a rest day or special day or regular holiday.
- For overtime work in the night shift.
Since overtime work is not usually eight (8) hours, the compensation for overtime night shift work is also computed on the basis of the hourly rate.
a. On an ordinary day.
Plus 10% of 125% of basic hourly rate or total of 110% of 125% of basic hourly rate.
b. On a rest day or special day or regular holiday.
Plus 10% of 130% of regular hourly rate on said days or total of 110% of 130% of the applicable regular hourly rate.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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